What’s behind crash of Middle East diesel exports to Europe?
The Middle East is now considered a key source of diesel and other types of fuel for Europe after the European Union sanctioned Russia for its invasion of Ukraine in 2022.
LONDON — Middle Eastern diesel exports to Europe tumbled in October to their lowest level in nearly a year amid refinery maintenance and several regional disruptions, while more of the fuel was shipped across from the United States to the continent, according to a new report by S&P Global Commodity Insights.
The Middle East has become a key source of diesel and other types of fuel for Europe since the EU sanctioned Russia for its invasion of Ukraine in February 2022. As a result, European countries do not import Russian fuel and have turned to the Middle East, India and the United States to shore up supplies. Before the full-scale invasion of Ukraine, Europe was a major buyer of Russian diesel, importing some 780,000 barrels per day in February 2022.
The S&P report, released Tuesday, analyzed shipping data and quoted analysts from the ratings agency.
Diesel exports from the Middle East to Europe fell to an average of 248,000 bpd in October, the lowest since November 2022 and down from 307,000 bpd in September, according to S&P Global Commodities at Sea data. The shift came as Saudi Arabia’s SATORP refinery was under maintenance for the whole of October and Kuwait’s Al-Zour refinery, one of the largest in the world, faced several technical disruptions in recent weeks, including a malfunctioning gas valve that almost completely shut down the facility in mid-November.
